May 2, 2013 / 10:06 PM / 5 years ago

EMERGING MARKETS-Brazil stocks fall on weak China data

* China PMI data shows factory sector slowed in April
    * Commodities firms weigh on Brazil's Bovespa index
    * Bovespa falls 1.05 percent, Mexico IPC down 0.41 percent

    By Asher Levine
    SAO PAULO, May 2 (Reuters) - Brazilian stocks fell on
Thursday after data showed manufacturing growth in top trade
partner China stumbled in April.
    Mexico's IPC index also dipped as shares of
telecommunications firm America Movil weighed, while
Chile's bourse closed up 0.40 percent.
    Investors shrugged off encouraging jobless claims numbers
from the United States and the European Central Bank's decision
to cut interest rates as the prospect of weaker growth in China
dragged on regional bourses.
    Data on Thursday showed Chinese factory sector growth slowed
in April from March, suggesting the country's demand for Latin
American commodity exports such as iron ore, soy, copper and
petroleum may be affected. 
    "Even though we had relatively good data this morning, it
was China that brought the market down," said Douglas Pinto, an
analyst with BGC Liquidez in Sao Paulo. 
    Brazil's benchmark Bovespa stock index fell for the
first session in three, losing 1.05 percent to 55,321.93. Latin
American markets were closed on Wednesday for a regional
    Iron-ore mining firm Vale SA, which counts China
as its biggest customer, dropped 2.73 percent, while OGX
Petroleo e Gas Participacoes SA, the oil company
controlled by Brazilian billionaire Eike Batista, fell 6.15
    Shares of electric utilities rose after Brazil's power
regulator Aneel authorized the release of nearly 2 billion reais
($1 billion) from the government's Energy Development Fund to
electricity distributors, who are struggling with higher spot
energy prices due to greater use of thermoelectric power.
    Shares of Companhia Paranaense de Energia, known
as Copel, rose 0.93 percent, while common shares of rival
Centrais Eletricas Brasileiras SA, known as
Eletrobras, added 2.19 percent.
    Mexico's IPC index fell 0.41 percent to 42,090.01 as shares
of telecommunications firm America Movil, controlled by
billionaire Carlos Slim, lost 0.92 percent.
    Chile's IPSA index rose 0.40 percent as shares of
paper and pulp producer Empresas CMPC rose 1.59 
    The company plans to issue $500 million in bonds abroad to
help fund a planned $2.1 billion expansion of its Guaiba plant
in Brazil's Rio Grande Do Sul, and recently started visiting
fixed-income investors.  
    Latin America's key stock indexes at 2145 GMT:
 Stock indexes                               daily %  year-to-
                             Latest           change    date %
 MSCI LatAm                     3,735.97       -0.88     -1.63
 Brazil Bovespa                55,321.93       -1.05     -9.24
 Mexico IPC                    42,090.01       -0.41     -3.70
 Chile IPSA                     4,309.40         0.4      0.19
 Chile IGPA                    21,161.87        0.37      0.43
 Argentina MerVal               3,843.16       -0.07     34.65
 Colombia IGBC                 13,414.91        0.18      5.92
 Peru IGRA                     17,447.61        0.55    -15.42
 Venezuela IBC                675,028.19        0.92     43.19
0 : 0
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